September 2026 monthly roundup

This month’s tax roundup highlights new tax rules, policy shifts, and other key tax and compliance updates covered in our blog in September 2026. Each could affect your business.

• New state tax rules address digital communications, rounding policies, and software. California is preparing to tax SaaS and prewritten software starting January 1, 2027. Other states are establishing sales tax rules for cash rounding, while digital services face growing communications tax exposure.
• Proactive financing strategies help businesses manage tax liabilities and liquidity. Managing sudden assessments, understanding loan payback periods, and avoiding accidental late-payment financing are critical for safeguarding cash flow.
• Global trade and cross-border policies are complicating compliance. A new wave of U.S.-Canada tariffs and a new French e-invoicing mandate are among the international tax requirements demanding attention.

California prepares to tax software and SaaS in 2027. The California Department of Tax and Fee Administration (CDTFA) is drafting emergency regulations for the new sales and use tax on prewritten software and software as a service (SaaS), which takes effect January 1, 2027. It’s a big, complicated job, and the clock is ticking. Read about California’s upcoming SaaS and software tax changes.

Cash rounding rules can disrupt sales tax compliance. With pennies fading from circulation, retailers may find themselves increasingly unable to make exact change. Should they round up or down, and before or after they calculate taxes and fees? Learn how state-specific cash rounding rules can complicate point-of-sale calculations and sales tax reporting.

Different industries trigger sales tax nexus differently. Economic nexus thresholds affect construction, manufacturing, and ecommerce businesses in distinct ways. Discover how these industries trigger sales tax nexus thresholds.

Digital services invite communications tax exposure and audit risks. Teleconferencing, Voice over Internet Protocol (VoIP), and numerous other services are subject to many complex state and local communications taxes and regulatory fees. Assess your company’s compliance risks stemming from digital communications taxes.

States extend gas tax holidays. Lawmakers in several states and a growing number of countries have suspended fuel taxes or delayed scheduled rate increases to provide consumer relief amid rising energy prices. In early September, the governor of Indiana extended the gas tax holiday for the fourth time. Discover other 2026 state gas tax holidays updates.

Business loan payback periods determine cash flow stability. Evaluating business financing requires looking beyond interest rates to assess how loan repayment timelines align with working capital cycles and upcoming revenue streams. Learn how to evaluate business loan payback periods effectively.

Businesses that address nexus liabilities quickly can limit penalties. Managing simultaneous tax obligations for multiple states requires a structured repayment strategy that can resolve nexus liabilities while minimizing compounding penalties and interest charges. Read about strategies for prioritizing state and local tax obligations.

Strict qualification criteria complicate traditional business borrowing. Traditional commercial lenders often impose stringent credit, revenue, and collateral requirements that make it difficult for growing businesses to secure rapid liquidity for tax obligations. Understand why qualifying for traditional business loans is challenging.

Manufacturers leverage specialized lending options to manage cash flow gaps. Extended B2B payment terms, upfront inventory costs, and unexpected use tax assessments make revolving lines of credit essential for manufacturing liquidity. Explore lending and credit options for manufacturing companies.

Software companies utilize flexible credit lines to fund multistate tax expansion. Subscription-based revenue models and multistate sales tax liabilities create unique cash flow timing challenges that tailored credit lines can bridge. Discover financing and credit solutions for software companies.

Early warning signs of tax-triggered cash flow troubles. Rapid growth, delayed tax registrations, unreconciled accruals, and unresolved audits serve as early indicators that hidden tax liabilities are straining working capital. Identify the red flags of a tax-driven cash flow crunch.

Late tax payments carry steep hidden financing costs. Treating delayed tax filings as short-term financing can incur a high effective annualized cost through state penalties, statutory interest, and reputational risk. Examine the true costs and consequences of paying business taxes late.

Continually shifting tariff policies are reshaping global supply chains. Frequent trade policy adjustments and evolving trade agreements require cross-border businesses to maintain agile customs classification and compliance processes. Read about how 2026 tariff changes are impacting international trade.

U.S.-Canada trade war escalates. Tensions between the U.S. and Canada intensified after the U.S. imposed steep new Section 338 tariffs on Canadian goods in August, and Canada retaliated in kind in early September. As of September 29, 2026, the U.S. is banning the importation of numerous Canadian products. Get the latest on the U.S.-Canada tariff war.

Section 338 tariffs cover a wide variety of Canadian products. Section 338 of the Tariff Act of 1930 provides broad executive authority to levy tariffs of up to 50% or enforce import bans against countries found to discriminate against U.S. commerce. Learn about Section 338 tariffs.

IEEPA tariff refunds continue. After the U.S. Supreme Court struck down IEEPA tariffs and the Court of International Trade (CIT) mandated IEEPA tariff refunds, U.S. Customs and Border Protection (CBP) established a new electronic refund process for IEEPA tariffs. Phase three launches October 6, 2026. Find out how to request IEEPA tariff refunds from CBP.

Delivered duty paid shipping eliminates surprise fees for international buyers. Shipping delivered duty paid (DDP) allows ecommerce sellers to collect customs duties and import taxes at checkout, so customers don’t get hit with unexpected and unwelcome duties upon delivery. Discover how DDP shipping can improve cross-border sales.

France establishes mandatory e-invoicing rules for ecommerce sellers. France has started to roll out mandatory B2B electronic invoicing and e-reporting requirements that impact cross-border sellers and marketplace operators conducting business in the French market. Check your readiness with this guide to France e-invoicing for ecommerce.

Interested in more international tax news? Visit our Europe tax news blog.

Guided Implementation facilitates Avalara AvaTax onboarding. Avalara Guided Implementation connects businesses with compliance experts to accelerate go-live time. Together, you’ll configure Avalara AvaTax and Avalara Returns in as little as one interactive session. Learn how Guided Implementation streamlines tax software setup.

Scaling businesses can outgrow their accounting tax tools. As Avalara CEO Hugo Sarrazin has observed: “Small and midsize businesses increasingly operate with the reach and complexity that once belonged primarily to larger companies. Growth complicates tax compliance.” Find out how technology simplifies tax compliance.

Product Pulse details faster integrations and flexible capital access. Recent Avalara platform updates include the Versori partner training program, expanded financing options through Avalara Capital, and streamlined connector setup workflows. Explore all the platform updates in the August Product Pulse.

Independent TEI studies quantify tax automation return on investment. A new Total Economic Impact™ (TEI) study conducted by Forrester Consulting highlights how automating indirect tax compliance reduces audit risks, administrative labor, and operational overhead. Discover how an ROI study can help you evaluate compliance software.